CELESTICA INC (CLS.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:CLS - CA15101Q2071 - Common Stock

415.53 CAD

+15.24 (+3.81%)

Last: 1/23/2026, 7:00:00 PM

Fundamental Rating

CLS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 15 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CLS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make CLS suitable for growth and quality investing!

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1. Profitability

1.1 Basic Checks

In the past year CLS was profitable.
In the past year CLS had a positive cash flow from operations.
Each year in the past 5 years CLS has been profitable.
Each year in the past 5 years CLS had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.85%, CLS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CLS's Return On Equity of 35.33% is amongst the best of the industry. CLS outperforms 100.00% of its industry peers.
The Return On Invested Capital of CLS (21.33%) is better than 100.00% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is in line with the industry average of 9.87%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	10.85%
ROE	35.33%
ROIC	21.33%

ROA(3y)4.63%

ROA(5y)3.55%

ROE(3y)15.02%

ROE(5y)11.3%

ROIC(3y)11.43%

ROIC(5y)8.93%

1.3 Margins

With a decent Profit Margin value of 6.35%, CLS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.33%, CLS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
Looking at the Gross Margin, with a value of 12.04%, CLS is doing worse than 80.00% of the companies in the same industry.
CLS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	7.33%
PM (TTM)	6.35%
GM	12.04%

OM growth 3Y24.27%

OM growth 5Y29.03%

PM growth 3Y34%

PM growth 5Y30.13%

GM growth 3Y8.03%

GM growth 5Y10.39%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
CLS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CLS is higher compared to a year ago.

2.2 Solvency

CLS has an Altman-Z score of 6.82. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a Altman-Z score (6.82) which is comparable to the rest of the industry.
The Debt to FCF ratio of CLS is 1.97, which is an excellent value as it means it would take CLS, only 1.97 years of fcf income to pay off all of its debts.
CLS has a Debt to FCF ratio of 1.97. This is amongst the best in the industry. CLS outperforms 93.33% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CLS has a worse Debt to Equity ratio (0.37) than 60.00% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

		Industry Rank	Sector Rank
Debt/Equity	0.37
Debt/FCF	1.97
Altman-Z	6.82

ROIC/WACC1.44

WACC14.85%

2.3 Liquidity

A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
The Current ratio of CLS (1.47) is comparable to the rest of the industry.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS has a Quick ratio (0.88) which is comparable to the rest of the industry.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	1.47
Quick Ratio	0.88

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.09%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.

EPS 1Y (TTM)47.9%

EPS 3Y44.1%

EPS 5Y48.11%

EPS Q2Q%51.92%

Revenue 1Y (TTM)22.09%

Revenue growth 3Y19.63%

Revenue growth 5Y10.38%

Sales Q2Q%27.79%

3.2 Future

The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth

EPS Next Y53.05%

EPS Next 2Y46.37%

EPS Next 3Y43.28%

EPS Next 5Y38.14%

Revenue Next Year26.52%

Revenue Next 2Y29.69%

Revenue Next 3Y30.76%

Revenue Next 5Y27.74%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 57.00, which means the current valuation is very expensive for CLS.
86.67% of the companies in the same industry are more expensive than CLS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (27.21), we can say CLS is valued expensively.
A Price/Forward Earnings ratio of 35.81 indicates a quite expensive valuation of CLS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a rather cheap valuation: CLS is cheaper than 93.33% of the companies listed in the same industry.
CLS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	57
Fwd PE	35.81

4.2 Price Multiples

80.00% of the companies in the same industry are more expensive than CLS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 73.33% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	86.9
EV/EBITDA	34.18

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 43.27% in the coming years.